SAP ERP Financials: Value date calculation logic during automatic payment

process
Most of us are familiar with online banking transactions. There would be thousands
of bank transactions happening 24/7. Did you ever think, how does payment
reaches a bank/payee, if it is done on a bank holiday or on a Sunday (Global holiday
in most of the countries)? Usually banks refer to value date while making a
payment to payee instead of transaction date. In case of real time transfers, value
date and transaction date are same.
In case of payments with say check, value date may be in future as well. Aligning
this kind of requirement to SAP, usually payments are handled in SAP through
automatic payment program (F110) or manual payments (F111). To understand the
complete process in a better manner, first we need to understand few terminology
used in payment process.
Payment media: This is the means of communicating the payment related
information to bank. This would have information like payee details, bank account,
amount to be paid etc.
E.g.: Payment media can be sent to bank through payment IDOC, flat file, XML file
etc.
Value date: This is the date on which bank has to dispatch the money to payee
account. Please note that payment media is sent in advance to the date on which
payment is to be made to payee. How many days before a payment media should
be sent to bank is controlled through configuration.
Payment advice: This is the communication sent to payee/accounting clerk (In
some cases where vendor doesn't have e-mail address) stating with the details of
the payments done (List of paid invoices, amount, payment currency etc.) and to
which bank account payment is made. This helps the payee to stay updated about
the payment progress.
Usually, F110/F111 is run on a weekday and payment media is generated
immediately and sent to bank. But, bank will start the payment process on the
value date mentioned in the payment media.
Value date configuration and calculation logic:
Value date can be calculated in two different ways.
1. Without bank calendar
2. With bank
Value date calculation without bank calendar:
Go to below path in FBZP.
Enter required company code and proceed. In the next screen, you can assign the
number of days to be added

to value date.
By default, value date is same as posting date entered in the payment run. Number
of days can be assigned at
payment method, House bank, account ID, Amount and currency level.
We can assign different number of days for different amount limit for the same
account , currency and payment
method
E.G: All checks (Check payment method) up to 100000 USD should be paid on 1 day
after the payment run
and 100001 USD onwards, should be paid 2 days after the payment run. This
feature helps to manage the
cash flow and funds in a better manner and wont cause sudden plunge of bank
account balance
due to unexpected huge payments. Business will have enoughSAP ERP Financials:
Value date calculation logic during automatic payment process (APP)
Generated by Jive on 2014-09-02+02:00
3
time to analyze the funds situation at any point in time.
Value date calculation with bank calendar:
This has two steps.
Configuring value date rules:
Go to value date rules from FBZP as shown below. Enter the company code and
proceed.
Enter the house bank, account ID, Transaction name(Free field).SAP ERP Financials:
Value date calculation logic during automatic payment process (APP)
Generated by Jive on 2014-09-02+02:00
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Reference date for determining the value date: This can have below options.
1 Document date
2 Posting date
3 Due Date
Most of the cases, posting date is selected as value date base line date (Reference
date).

Calendar 1: This is the factory calendar ID used for calculating the value date. Bank
holidays defined in this
calendar are considered while calculating value date.
+ or sign indicates weather the number of days mentioned is to be
added/subtracted.
E.G: If the value date reference is posting date, Payment run Posting date =
01.04.2014
Considering above screenshot,
If 1st April is a holiday as per calendar EC, then value date base line would be
02.04.2014.
If 1st April is a working day as per calendar EC, then value date base line would be
01.04.2014.
Deviation from reference date in days: Number of days mentioned here are
added/subtracted based on the
sign column to the value date base line date.
From above example, value date calculation happens as below
If 1st April is a holiday as per calendar EC, then value date base line would be
02.04.2014, value date = value
date base line + 2 days = 04.04.2014
If 1st April is a working day as per calendar EC, then value date base line would be
01.04.2014, value date =
value date base line + 2 days = 03.04.2014SAP ERP Financials: Value date
calculation logic during automatic payment process (APP)
Generated by Jive on 2014-09-02+02:00
5
Once transaction name with the value date calculation rule is configured, next step
is to assign this
transaction to payment method.
Go to below path in FBZP. Enter company code and continue.
Enter the payment method, Transaction, House bank, account ID and the
transaction name created above.
Dont get confused with the transaction entered in second column with the one in
sixth column.

The one in second column is used for distinguishing different types of transactions
for the same
payment method. Below values are allowed here.
Space Transaction not relevant
1 Bill/exch. for discount
2 Bill/exch. for collection
3 Check deposit at same bank
4 Check deposit in same region
5 Check deposit (general)
This allows to configure different value date rule for same payment method.
EG: If payment method A is used for check payments, check at same bank might
need lesser time compared to check in different bank in same region.
Usually transaction in second column is maintained as blank. The one in sixth
column is used for determining value date rules (Configured in previous step).
These steps completes the configuration of value date calculation. These rules
would be used when payment media is generated and during value date calculation.